NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound After Friday’s Pullback

Key Insights

• SP500 settled above the 4150 level as traders were ready to buy stocks after the recent pullback. 
• NASDAQ climbed above the 14,300 level as the appetite for risk increased. 
• Dow Jones rallied above 32,900 amid a strong rebound in the equity markets. 

SP500

SP500 moved higher as traders used the recent pullback as an opportunity to establish long positions at attractive levels. Today, traders had a chance to take a look at Dallas Fed Manufacturing Index report, which showed that Dallas Fed Manufacturing Index declined from -18.1 in September to -19.2 in October. The report did not have a significant impact on SP500 as traders remained focused on geopolitical news and continued to prepare for the upcoming Fed Interest Rate Decision. Oil markets suffered a sell-off amid signs that Israel preferred a cautious approach instead of a full-scale ground operation against Hamas in Gaza. This sell-off provided additional support to major indices as lower energy prices help Fed in its fight against inflation. Not surprisingly, energy stocks were the only market segment that was moving lower in today’s trading session.

SP500 found support at 4100 – 4120 and is moving towards the nearest resistance level, which is located at 4200 – 4215. A move above this level will open the way to the test of the resistance at 4260 – 4280.

NASDAQ

NASDAQ gained upside momentum as demand for tech stocks increased. Amazon, which was up by roughly 4%, was among the biggest gainers today. Other mega cap stocks have also received strong support in today’s trading session.

In case NASDAQ stays above the 14,300 level, it will head towards the nearest resistance at 14,560 – 14,680.

Dow Jones

Dow Jones rallied amid a strong rebound in the equity markets. The rally was led by Verizon shares, which were up by 3.5%. The stock enjoys strong demand as traders react to the recent earnings report.

The nearest resistance level for Dow Jones is located in the 33,000 – 33,100 range. A successful test of this level will open the way to the test of the next resistance at 34,000 – 34,150.

For a look at all of today’s economic events, check out our economic calendar.